Published On: Mon, Nov 6th, 2017

7th Pay Commission: Central pay cap to be lifted

New Delhi: Amid growing expectation that the pay cap will be lifted soon for central government employees, government is expected to accept the recommendations of National Anomaly Committee (NAC), which are due to report soon.

Where government need to make sure to keep FM Arun Jaitley’s promise to lift pay cap.

Where government need to make sure to keep FM Arun Jaitley’s promise to lift pay cap.

Finance Ministry will now get “flexibility” to breach the longstanding minimum pay 18,000 with fitment factor 2.57 times.

The expectation came as the Finance Minister Arun Jaitley made promise to raise minimum pay of the central government employees in a meeting with the central government employees’ unions leaders on June 30, 2016, day after the cabinet approval of the 7th Pay Commission’s recommendations.

The central government employees unions had reacted angrily to the pay awards, had expressed their dissatisfaction over the inadequate hike in basic pay and threatened to go on indefinite strike.

There was also warning from the unions that making employees minimum pay Rs 18,000 to Rs 26,000 and asked to raising fitment factor 3.68 times from 2.57 times.

Consequently, National Anomaly Committee has been formed in September, 2016 to look into the pay irregularities arising out of the 7th Pay Commission’s recommendations.

There has been speculation in recent weeks the pay cap could be lifted in response to unions demand.

Imaging the increases for central government employees’ pay, a top Finance Ministry official, who did not wish to be named told The Sen Times “now is a time to move to a more flexible approach” to employees pay.

“Government is making sure that its policy is targeted to where there are specific issues, where government need to make sure to keep FM Arun Jaitley’s promise, but also where government does need to make sure that pay cap will not cost for government exchequer. However, employees deserved pay hike to keep up with inflation” he said.

“What government is making sure is that government looks at the Gujarat and Himachal Pradesh assemblies’ elections because BJP performance in the both states will send out strong signals about the pay cap lifting of the central government employees.”

The higher increases fitment formula with 3.00 times from 2.57 times, which will be gone up he salary and pension in general for all segments of employees, on the recommendations of National Anomaly Committee.

The 7th Pay Commission, led by Justice A K Mathur, earlier proposed minimum basic pay from Rs 7,000 to Rs 18,000 per month while the maximum basic pay from Rs 80,000 to Rs 2.5 lakh with a fitment factor of 2.57 times of basic pay of sixth pay commission has been proposed uniformly.


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